Wang Jianguo's One Step Move: To Fight The "King Of Children"?

Wang Jianguo (data photo)

He even began to summarize business with Zen enlightenment. After leaving home appliance retail business, Wang Jianguo joined.

Wang Jianguo, who has been pformed into an investor, is different from PE's financial investment. He is more like an incubator, providing ideas and funds for start-ups.

He wanted to do something meaningful, so he thought of introducing the retail experience into a new "baby industry" from the perspective of children.

The "king of children" was founded in 2009, which is aimed at Yu Yingtong.

The child king of Hexi Wanda Plaza in Nanjing is more like a carnival of personal voices. Children of different ages can find places to go: amusement parks, children's photography and early childhood training.

And more children are pouring parents' clothes into the children's Center store to buy toys.

The flagship store opened 5 months ago, and it was even more popular than WAL-MART in the same building.

Xu Weihong, general manager of the children Wang Industry Co., Ltd. is also quite satisfied with the result.

The outside world gave the mother infant market an optimistic valuation. As Xu Weihong described, the one trillion yuan mother infant market surpassed the home appliance industry, but it was very scattered and showed a typical dumbbell structure.

The market is large, and there are about 5 suppliers, but the market lacks large retailers and suppliers. Up to now, there are no more than one billion maternal and infant companies, and there are no more than 500 million companies in e-commerce.

Xu Weihong jokes that they are "many hundred million trained". He used to be a personal assistant to Wang Jianguo. He was appointed to open up new markets in Five Star appliances. "The appliance industry deals with hundreds of millions of pactions, so our pattern is bigger than that of ordinary retailers."

Xu Weihong said.

The children's king has made an extraordinary hand. In the first flagship store in Nanjing's West Wanda Plaza, the area is close to 7000 square meters, while the traditional baby channel business area in the industry is about 200 square meters.

Wang Jianguo described the mother child theme mall as a one-stop service center, which can not only buy more maternal and child products, but also include swimming, early education, talent, language training, software amusement and children's photography.

This is also the ingenuity of the children's business model. The baby product itself is not suitable for large-scale chains, because the scale of the retail industry depends on whether the passenger flow and the unit price can support the cost operation.

There are about 50 thousand new babies in Nanjing a year, so the number of customers is not large, and the price of infant products is low, so the passenger flow and the unit price are not satisfactory.

Comparatively speaking, although the flow of household electrical appliances is not high, the price per household purchase is 15 times higher than that of infant products.

Therefore, the market has always had some deficiencies in developing large-scale chains.

The child king made a series of innovations.

The regular baby shop sells products from 1 to 3 years old, while the children provide comprehensive products from -1 years old (pregnancy) to 14 years old. Besides providing more abundant product categories, Wang also provides more value-added products including early education and software games.

Wang Jianguo described this as a comprehensive innovation in the retail industry, jumping out of the original one-way output.

They have all experienced the 1 period of retail development, and the major manufacturers are stationing themselves in sales personnel. In order to win customers, promoters will inevitably defame each other, and users are also puzzled about the choice of products.

This is a chaotic situation in the early days of fierce competition, and now retail chains are moving towards the 2 age, and user experience and product quality are gaining momentum.

Unable to compete with the appliance retail dealer price, and the supermarket traffic, the children Wang team began to think of ways to improve themselves.

The early education center inside the child's king can enable customers to patronize two or three times a week, which can bring potential consumption opportunities.

The child king has accurate records of customer behavior, so that he can better manage customer behavior and predict their consumption.

Xu Weihong likes to use the story of "Wang Yongqing sells rice" to describe the importance of customer management. When Wang Yongqing delivers rice, he makes a survey of the size of the rice bowl and the population of the user, so that it can guess when the user's rice will run out and deliver it in advance.

"Our internal CRM (Customer Relationship Management) can effectively analyze the customer model, and 90% of our sales now come from members. If the target is 1 hundred million stores, as long as we develop 30 thousand members, each member will spend 3500 yuan to achieve it."

Xu Weihong said.

The store is the biggest sales channel for child Wang, and it is also the retail area that Wang Jianguo once knew.

Physical stores, Internet sales and direct purchase manuals constitute the "Trinity" of children's king, and online (Internet and direct purchase manuals) account for about 35% of sales.

Wang Jianguo does not think that e-commerce is the real enemy of physical store sales. Different consumers need different ways. The experience and sales pleasure brought by the entity store can not be replaced.

"The retail industry did encounter a turning point. The traditional retail thinking is result oriented, and the product sales also make money.

But now it is customer-oriented, and more value-added services are needed to win customers.

This is also a must for traditional retailing. "

Wang Jianguo said.

In the early days of cooperation with best buy, Wang Jianguo and his team also gained a lot of experience of "service concept". The best buy brand was withdrawn from the mainland of China, and Wang Jianguo felt that it had encountered the wrong time. Not only did it encounter the attack before and after the Gome Suning, but also the manufacturers did not give them the support they needed, resulting in its high cost.

Wang Jianguo believes that traditional retailing faces pformation from the perspective of customers.

In order to feel the spirit of service, he invited all middle-level cadres to eat at the bottom of the sea and set up three tables. After dinner, please chat about the experience and observation of the sea fishing. "Everyone's feelings are different, but the important thing is to understand the spirit of service."

Child Wang also improves user experience in detail, such as "mother support group". This is a team composed of all female employees who have already made their mothers. They provide product distribution for customers. They can not only narrow their psychological distance with customers, but also send experience to new mothers.

This mode is made by the child king after the client's advice.

Children's products also pay more attention to quality and safety. Children's clothing materials are organic cotton, buttons must be tested by professional pull to ensure that no accidents occur.

In terms of food regulations are more stringent, shelf life has passed 1/3 products can not enter the store, the shelf life of only 1/3 products will be forced to go off the shelf.

Despite its establishment for more than a year, child king has become a channel that brands can not ignore. According to Xu Weihong, the sales volume of a milk powder brand in Nanjing is about 50000000 a year, while the child king occupies 1/5 of it.

In addition to quality and meticulously selected, children Wang also held various offline activities under the participation of members, and launched online communities to unite more mothers.

"Online and offline, simple commodity sales are not competitive, and more value-added services are needed to ensure sustained growth."

Xu Weihong said.

The children's king has opened four stores in May 1st this year, which are located in Nanjing, Hefei and Huaian, all of which are the five star electric appliances scenery area.

By the end of this year, the children's business area is expected to reach 80 thousand to 100 thousand square meters. According to the conversion of 200 square meters of each shop in the traditional baby channel, it is equivalent to 400 to 500 shops. From a sales perspective, the Shopping Mall of a big Mac is equivalent to the total number of 40 children in the traditional baby shop. The number of single products is about 30 thousand, which is close to a WAL-MART.

Wang Jianguo hopes to get out of the vicious circle of price war. What is more important to parents than to see the healthy growth of their children? The goal of Wang is to become the leader in the industry, the preferred partner of consumers and suppliers in 5 years.

The domestic demand push and the baby boom are all promising market support for him. The veteran of the appliance industry hopes that the cause will return to the second spring in the baby market.